Information is provided for Dawson and Key:

Dawson

Sales $1,000,000

Net Income $80,000

Total Assets $250,000

Key

Sales $1,000,000

Net Income $130,000

Total Assets $500,000

Using the formulas for profit margin, asset turnover and return on assets indicate which has the higher return on assets and the primary reason for the higher return on assets.

Group of answer choices

1 Dawson due to higher profit margin

2 Dawson, due to hgher asset turnover

3 Key due to higher profit margin

4 Key due to higher asset turnover